Pakistan is set to announce a mini budget to generate about Rs200 billion additional revenue to meet IMF Conditionalities. The mini budget will be placed before and approved by parliament ahead of IMF final talks on 16.02.2023.
The government is taking harsh taxation measures on the demand of the IMF to general more revenue for lower the fiscal deficit.
Sources in FBR on 14.02.2023, said that the changes many be applicable from 15.02.2023, after cabinet approval. They said that through the new amendments the government had aimed to generate another Rs.200 billion.
The sources highlighted the major changes in the tax laws including
a) Imposition of 0.6 per cent withholding tax on non-filers for making banking transactions.
b ) Additional Tax on the foreign exchange income of the banks.
c) The most important change is enhancing sales tax at 17 per cent to 18 per cent.
d) Furthermore, enhancing fixed federal excise duty on motor vehicles is also under consideration.
e) The sources said that the enhancing excise duty on soft drinks is also under consideration.
f) The duty enhancement on cigarettes is also likely.
g) Imposition of a flood levy is also on the cards.This levy may be imposed on imports at 3 to 10 per cent. However, exports would be exempted from the flood levy.
